What Is A Pre Construction Service Agreement?

Last updated May 5, 2022

What is a Service Agreement?

A Service Agreement is a contract used between a service provider and a customer (or customer) that outlines the exchange of services for compensation.

A Service Agreement describes the terms of service, and should include a description of the piece of work, the price for the service, assurances, and the contractor's and client'south contact information. A service contract can be used for one specific task or an ongoing position that doesn't accept an end engagement when the contract is signed.

Service Agreements are usually necessary when a job's terms become more complex or need a detailed explanation.

A Service Agreement is besides known as a/an:

Full general Service Contract
Contained Contractor Agreement
Consulting Services Agreement

When should I use a written Service Agreement?

Service providers should utilise Service Agreements any time they perform a service for a client. The agreement protects their interests and ensures they receive bounty. Information technology's a skillful idea to document the pay rate for services, invoicing frequency, and insurance clauses.

Clients should use a Service Understanding whenever they hire a service provider to perform a paid task. The agreement establishes the exact details of the organization, including compensation, duties, and confidentiality, if required.

What kind of service providers should use a Service Agreement?

A service provider is anyone who provides a service to another party. While it's not mandatory for all service providers to utilize a Service Understanding, some mutual examples of service providers that utilise service contracts include:

Caterers
Cleaners
Construction companies and contractors
Consultants
Child care providers (east.g., babysitters, nannies, and daycares)
Dog walkers
Freelancers
Graphic designers
Hairstylists and makeup artists
Landscapers
Legal service providers
Musicians
Photographers
Public relations specialists
Web developers
Writers and editors

How do I write a Service Agreement?

You can easily create a Service Agreement by filling out LawDepot's questionnaire. Using our template will ensure yous consummate the necessary steps:

1. State how long the services are needed

Start your Service Agreement by stating how long the contractor will need to provide the service.

The agreement can be for:

A single chore: Every bit long every bit it takes to complete the chore
A fixed-term: A specified date and so comes to an end
Indefinitely: As long as the piece of work is ongoing

2. Include the state where the piece of work is taking identify

States may have labor laws that differ from others. Include which land the work is taking identify, and LawDepot will customize your Service Agreement to meet your local laws.

The Off-white Labor Standards Act governs federal labor laws. It's besides important to note that the Service Contract Act of 1965 dictates that for any contract in excess of $2,500 service providers must pay their employees minimum wage.

3. Describe the service existence provided

Include an accurate clarification of exactly what the service provider will practise for the length of the agreement. Providing a detailed clarification reduces the adventure of misunderstandings later.

An authentic description of services gives the contractor and client a articulate idea of what to await.

For instance, if a client hires a contractor to install an internet modem in their dwelling, the Service Agreement might include that the contractor is responsible for:

Providing the modem and affixing it
Running Ethernet cables through the belongings
Handling quality assurance to brand sure the unit works properly.

4. Provide the contractor'south and client's data

Include the contractor's and customer's contact data. State whether each party is an individual or arrangement, and include their names and addresses. Y'all can list as many as four contractors or clients in your certificate.

Having the service provider's and client'southward information in the Service Agreement helps it human activity equally a convenient reference if either political party needs to contact the other.

v. Outline the compensation

In that location are many factors to consider when deciding how bounty will be exchanged, including:

Pay rate
Sale taxation
Payment schedule
Involvement for tardily payments
Consequences of non-performance

Billing details

A Service Agreement needs to include how much money the contractor will brand for the task. Determine the charge per unit the service provider will charge and include the payment amount. Likewise, specify if the amount volition consist of a sale tax or whether the tax will exist added subsequently.

If the contractor and client concord on a different payment method, describe the compensation. For example, the client may prefer to pay with coin and shares of stock.

Deposit

State the deposit amount if a eolith is part of your agreement.

A deposit is a sum of money that the client gives the contractor earlier work begins. It acts as security or collateral for the commitment of a service. Depending on the customer's trustworthiness and financial stability, a deposit is usually 10 to 50% of the total contract corporeality.

Payment Schedule

Describe when the client will brand payments to the contractor. The options available depend on the duration of your contract. A one time chore is unremarkably paid when the job is finished. College value structure contracts ofttimes have a customized payment schedule based on completing various stages of the work. Open concluded contracts with no fixed end dates feature periodic invoicing and payments.

Tardily payments

Set a specific time frame for how long the client has to pay the contractor later on receiving an invoice. Typically, 15 to 30 days is sufficient fourth dimension to pay an invoice. If the customer doesn't pay the amount they owe within the time frame, the contractor can utilize an involvement charge per unit on late payments.

Reasonable belatedly fees go upwardly to 25% per yr on unpaid sums. Usury laws prohibit excessive interest rates, regardless of the Service Agreement's terms. An involvement rate that exceeds the maximum rate permitted by country law isn't enforceable.

6. Country the understanding's terms

A Service Understanding also needs to comprehend the terms and atmospheric condition of the working relationship between a contractor and customer.

Reimbursing expenses

There may be instances where the contractor needs to dip into their pocket to continue a project progressing (e.one thousand., gas coin for traveling or hotel accommodations).

Country in your Service Understanding whether the customer will need to reimburse the contractor for work-related expenses. If so, specify the guidelines for boosted costs. For example, the client may prefer the contractor to seek pre-approval before doing any boosted spending.

Intellectual property

Intellectual property is any work that is a creation of the mind. For example, music, logos, blueprints, software, etc.

Sometimes a contractor needs to get innovative while doing a task. Specify who will own the intellectual holding produced during the service between the contractor and customer.

Confidentiality

You may choose to include terms addressing confidentiality. This volition depend on whether the customer prefers to add together these clauses to protect sensitive information about themselves or their business concern.

7. Include whatsoever boosted clauses

LawDepot'south Service Agreement offers users the option to include additional clauses. Some people might apply this department to address factors similar:

Indemnity
Return of property
Liability
Legal expenses

Calculation these terms is optional and depends on your personal situation.

8. Describe the signing details

State the appointment the parties will sign the Service Agreement and whether whatever witnesses will be present.

If yous're unsure when the parties will sign the document, you can provide the engagement later. A blank space will be available at the bottom of your understanding.